2022, 2021 and 2020 Tax Information
Other Helpful Information
With the introduction of Form 1099-NEC, it appears the IRS is showing a renewed interest in determining whether or not workers are being properly categorized and fairly treated.
Click below for a checklist to determine if a worker is an employee or independent contractor.
Also, visit the IRS website at the link below for further information.
Social Security tax is calculated on earnings up to the following limits:
2023 = $160,200
2022 = $147,000
2021 = $142,800
Social Security benefits can be received before full retirement age but may be limited when wages reach:
2023 = $21,240
2022 = $19,560
2021 = $18,960
You CANNOT deduct donations to politicians, political campaigns, political action committees, political parties, “Go-fund-me” accounts or individuals.
You CAN only deduct donations to “Qualified Charitable Organizations”, also known as 501(c)3 organizations. We recommend that you document your donations by check or credit card, and request a letter of receipt from the charity showing the amount date and amount donated. Donations of cash are difficult to defend if you are audited by the IRS.
Non-cash donations (clothing, household items, etc.) should be itemized and valued by you at the time of the donation. We recommend that you take pictures of items you donate as documentation and get a receipt from the charitable organization.
Donations valued at $5,000 or more require an appraisal.
Donations of automobiles, artwork and shares of stock have special rules. Please call us if you plan to donate one or more of these items.
Do I need to pay quarterly tax estimates?
If your tax withholdings from your paycheck, pension or retirement accounts, etc. will cover your tax liability for the year, then you will likely NOT have to pay quarterly tax estimates.
However, if you believe your tax withholdings will leave you owing tax next April, then quarterly estimated tax payments MAY be necessary to avoid costly interest and penalty charges assessed by the IRS and any state where you must file.
The amount of your estimated tax payments depends on your income levels. We would be happy to assist in calculating your estimates.
Contribution limits for: 2023 2022 Traditional & Roth IRAs Contributions $6,500 $6,000 Catch-up Contributions for participants age 50 or older $1,000 $1,000 401(k), 403(b), 457 Plans Contributions $22,500 $20,500 Catch-up Contributions for participants age 50 or older $6,500 $6,500 SIMPLE IRA plans Contributions $15,500 $14,000 Catch-up Contributions for participants age 50 or older $3,500 $3,000 Qualified plans annual compensation limit $350,000 $305,000 Maximum annual amount $66,000 $61,000
Contribution limits for: 2023 2022 Self Only $3,850 $3,650 Family $7,750 $7,300 Catch-up Contributions for participants age 55 or older $1,000 $1,000
Standard mileage rates for an automobile used for:Business purposes
2023 – 65.5 cents per mile
2022 – 58.5 cents per mile Jan 1 to June 30
2022 – 62.5 cents per mile July 1 to Dec 31
2021 – 56.0 cents per mileMedical or moving purposes
2023 – 22 cents per mile
2022 – 18 cents per mile Jan 1 to June 30
2022 – 22 cents per mile July 1 to Dec 31
2021 – 16 cents per mileCharitable purposes
2023 – 14 cents per mile
2022 – 14 cents per mile
2021 – 14 cents per mile
The gain on the sale of your personal residence is NOT taxable if:
- The gain is less than $250,000 if filing single
- The gain is less than $500,000 if married filing joint
- If, during the 5-year period ending on the date of the sale, you have owned the home for at least 2 years (the ownership test),
- and if, during the 5-year period ending on the date of the sale, you lived in the home as your main home for at least 2 years (the use test),
If you owned and lived in the property as your main home for less than 2 years, you may still be able to claim an exclusion in some cases. Call us for details on this exclusion.
If you are a victim of identity theft, the Federal Trade Commission recommends these steps:
- File a complaint with the FTC at identitytheft.gov
- Contact one of the three major credit bureaus to place a ‘fraud alert’ on your credit records:
- Contact your financial institutions, and close any financial or credit accounts opened without your permission or tampered with by identity thieves.
If your SSN is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends these additional steps:
- Respond immediately to any IRS notice; call the number provided or, if instructed, go to IDVerify.irs.gov.
- Complete IRS Form 14039, Identity Theft Affidavit, if your efiled return rejects because of a duplicate filing under your SSN or you are instructed to do so. Use a fillable form at IRS.gov, print, then attach the form to your return and mail according to instructions.
- Continue to pay your taxes and file your tax return, even if you must do so by paper.
Form W-4 was revised in 2019. The new form can be obtained from the link below.
What is Form W-4?
Your employer needs you to complete Form W-4 so they can accurately withhold federal taxes from your paycheck.
When should I complete Form W-4?
Your employer will have you complete Form W-4 when you start a new job. You should consider updating this form each time your personal or financial situation changes – marriage, divorce, birth of children, landing a promotion with a raise or other increase in income.
How many allowances should I claim on Form W-4?
The number of allowances you claim depends on your personal and financial tax situation.
In general, the fewer allowances you claim, the more federal income tax your employer will withhold and your take home pay will be less. If you claim more allowances, your take home pay will increase because your employer will withhold less federal tax. This sounds great, but be careful. If you have too little tax withheld from your paychecks, you may owe taxes when you file your return next April. In addition, you may also owe interest and penalties for having too little withheld. Please call us if you have questions.